James at MinionGames.com recommends Impressions Advertising (http://www.impressionsadv.net) as both a stepping stone to distributors and a fulfillment service. I'll have to look into it more closely when I get nearer to having a product, but it looks like it could well be worth it. I've looked around for fees, and they appear to charge a $250 setup fee plus 18% of net revenue from distributors.
That sounds like a big chunk, but remember that you're getting 50% of retail from distributors, so 18% of that 50% is really only 9% of the purchase price, so you're really getting 41% from them. If that makes any sense.
If I'm able to get my game produced for $3-4, and the MSRP is $16-20, then I'd get 41% from Impressions, or in the neighborhood of $6.50 to $8.00 a game. With advertising, setup, and other costs, that's enough to break even if I can sell out my print run, although not enough to make much money doing this. If they've got a reasonable record getting stuff placed with distributors, then it could well be worth it. Especially if they've got connections in other countries.
Wednesday, July 21, 2010
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